CSR should not be done in patchy way: Tata Sons advisor

SINGAPORE: As companies gear up to spend 2 per cent of profits mandatorily on social welfare, a Tata group advisor has asked India Inc to undertake their CSR activities as a priority area, and not in a "patchy way".

Satish Pradhan, advisor to Tata Sons Ltd and former executive vice-president in charge of group's human resources, also asked the industry to give it a five-year timeframe for results to be visible of the proposed new law.

Under the new Companies Act, 2013, all companies with sizeable business would have to spend 2 per cent of their three-year average net profit on CSR (Corporate Social Responsibility) activities every year with effect from the next fiscal.

"My belief is that good companies were doing all tax compliance with the right spirit of what is behind it. They will do this (CSR work) also with the right spirit. Not so good companies were doing tax compliance in a patch way, (and) patchy way will come into this (CSR work) also," Pradhan told a select group of journalists during a Human Capital Summit held here.

Emphasising on the need for prioritising agenda by corporates to spend on CSR, he said, "In our country, we need much more focus to make impact on specific priorities."

"So if we were to say, look for the next five year programmes you take on should have allegiances to water management or afforestation or health and hygiene. And for five years, let us all focus the CSR effort on improving health and hygiene so human development index take one of the drivers and make that needle of focus for the next five year," he added.